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In order to buy a home today, it’s important to have a down payment.
If you are looking to buy a home, whether you have owned one in the past or not. The American dream of owning a home is still there, but it is becoming increasingly more difficult to get the financing needed to purchase a home.
FHA Loans – If you opt for an FHA loan you can buy a home with as little as a 3% down payment. One of the drawbacks to FHA loans is that they have limits. You must buy a home that is lower than the FHA limit. A benefit to buying a home with an FHA loan is that refinances are SO easy. To refinance your FHA loan, all you have to do is find someone who does FHA streamline refinance loans. They can refinance your loan without an appraisal and without any current proof of income. They only need your current mortgage and home information and you can refinance at the lowest rates available. They will need to pull your credit report, though.
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10% – 20% Down – There are other loans available that will require at least 10% down. They will also require full documentation. You will need all income and employment information. These conventional loans are not guaranteed by the government so they are more risky for lenders to undertake. That translates into higher interest rates and a more rigorous application and approval process for the borrower.
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The more money you are able to put down, the easier it will be for you to get approved for your home in 2009 or 2010. Focus on saving your money and improving your credit score the best you can. Both of these factors will make the process a lot easier for you.
Look For Builder’s Special Deals on Mortgages – Some builders offer special interest rates or loan discounts with the homes that they sell. You might want to look at their special offers. They might be able to help you get a lower rate than you would going through your own mortgage broker.[ad#CJ LT 468x60Banner]